VSE Aviation Awarded $750 Million in New Distribution Agreements

VSE Corporation (NASDAQ: VSEC, "VSE", or the "Company"), a leading provider of aftermarket distribution and maintenance, repair and overhaul ("MRO") services for air and land transportation assets for commercial and government markets, announced today that its VSE Aviation segment has been awarded 6 new distribution agreements with several manufacturers for a combined value of approximately $750 million over the term of these agreements. The agreements are expected to begin in the first quarter of 2024, with contract terms ranging between one and 15 years in duration.

VSE Aviation also announced today plans to open a 45,000 square foot distribution facility in Hamburg, Germany. This new facility will open in the first quarter of 2023 and serve as the distribution center of excellence supporting Europe, the Middle East, and Africa. This investment positions VSE Aviation to expand the global coverage and support for its commercial and business and general aviation distribution aftermarket product lines, including the tire, tube, and battery product lines associated with the Desser Aerospace acquisition.

“We are very proud to announce the award of several new commercial and business and general aviation (B&GA) distribution agreements with a number of leading original equipment manufacturers (OEMs), including an expansion of our flagship distribution agreement with Pratt & Whitney Canada,” stated John Cuomo, President and CEO of VSE Corporation. “The expansion of our agreement with Pratt & Whitney Canada supporting Europe, the Middle East, and Africa is the culmination of our successful partnerships and recognition of the service and value our VSE Aviation business provides to the market.”

“VSE Aviation continues to be recognized as a trusted partner within the Aviation aftermarket, and our “tip-to-tail” distribution and product line management offerings continue to resonate with leading OEMs,” stated Ben Thomas, President of VSE Aviation. “We believe OEMs will continue to look for, and be attracted to, VSE Aviation’s highly technical, differentiated solutions that allow us to better support OEM products in the aftermarket.”

Mr. Thomas continued, “We look forward to opening our new Germany distribution Center of Excellence to support our EMEA region customers. The new facility is expected to play a critical role in supporting the expansion of our Pratt & Whitney Canada EMEA agreement and the global expansion of our newly acquired Desser Aerospace business. This facility will better position VSE Aviation to provide world-class customer service and product support to our regional customers in EMEA.”